Q1 2026 Telkom Indonesia (Persero) Tbk PT Earnings Call

June 2, 2026

Speaker #1: You have joined the meeting as an attendee and will be muted throughout the meeting. This meeting is being recorded.

Operator: Good afternoon. Thank you for joining us today for Telkom Indonesia's Q1 2026 earnings call. Before we start, let me remind you that today's call and the responses to questions may contain forward-looking statements within the meaning of Safe Harbor. Actual results could differ materially from projections or estimates and may involve risks and uncertainties that may cause actual results to be different from what we have discussed today. First, I would like to introduce our board of members who are joining us today. Our CEO and President Director, Ibu Dian Siswarini, our Director of Finance and Risk Management, Bapak Angelo Syailendra. Our Director of Enterprise, Ibu Vera, who should be here shortly. Our Director of Networks, Bapak Nanang Hendarno. Our Director of Strategic Business Development and Portfolio, Bapak Seno Soemadji. Our Director of Digital IT, Bapak Faizal Djoemadi. Our Director of Human Capital, Pak Willy Saelan.

Bret Ginesky: Good afternoon. Thank you for joining us today for Telkom Indonesia's Q1 2026 earnings call. Before we start, let me remind you that today's call and the responses to questions may contain forward-looking statements within the meaning of Safe Harbor. Actual results could differ materially from projections or estimates and may involve risks and uncertainties that may cause actual results to be different from what we have discussed today. First, I would like to introduce our board of members who are joining us today. Our CEO and President Director, Ibu Dian Siswarini, our Director of Finance and Risk Management, Bapak Angelo Syailendra. Our Director of Enterprise, Ibu Vera, who should be here shortly. Our Director of Networks, Bapak Nanang Hendarno. Our Director of Strategic Business Development and Portfolio, Bapak Seno Soemadji. Our Director of Digital IT, Bapak Faizal Djoemadi. Our Director of Human Capital, Pak Willy Saelan.

Speaker #2: Good afternoon, and thank you for joining us today for Telkom Indonesia's first quarter 2026 earnings call. Before we start, let me remind you that today's call and the responses to questions may contain forward-looking statements within the meaning of Safe Harbor.

Speaker #2: Actual results could differ materially from projections or estimates, and may involve risks and uncertainties that may cause actual results to be different from what we have discussed today.

Speaker #2: First, I would like to introduce our board members who are joining us today: our CEO and President Director, Ibu Dian Sisorini; and our Director of Finance and Risk Management, Bapak Angelo Shalendra.

Speaker #2: Our Director of Enterprise, Ibu Vera, who should be here shortly. Our Director of Networks, Bapak Nanang Handarno. Our Director of Strategic Business Development and Portfolio, Bapak Seno Somaji.

Speaker #2: Our Director of Digital IT, Bapak Faizal Jomadi; our Director of Human Capital, Bapak Willie Sailan; our Director of Legal and Compliance, Andy Kalana; and our Director of Wholesale and International Service, Budi Satria.

Brad: Our Director of Legal and Compliance, Andy Kelana. Our Director of Wholesale and International Service, Budi Satria. Also joining us are the board of directors of our subsidiary, Telkomsel. With us is the CEO and President Director, Bapak Nugroho. The Director of Finance and Risk Management, Bapak Daru Mulyawan. The Director of Sales, Bapak Susatyo. The Director of Marketing, Lionel Chng. Please feel free to write any questions in the chat box during the call, and we'll address them in the Q&A section. In addition, please feel free to raise your hand to ask a question as well. We would ask that all questions only have a minimum of two parts, and any additional questions, please re-enter the queue. Now, I would like to hand the call to our President Director and CEO, Ibu Dian Siswarini, to discuss our Q1 2026 results and strategic initiatives. Ibu Dian.

Bret Ginesky: Our Director of Legal and Compliance, Andy Kelana. Our Director of Wholesale and International Service, Budi Satria. Also joining us are the board of directors of our subsidiary, Telkomsel. With us is the CEO and President Director, Bapak Nugroho. The Director of Finance and Risk Management, Bapak Daru Mulyawan. The Director of Sales, Bapak Susatyo. The Director of Marketing, Lionel Chng. Please feel free to write any questions in the chat box during the call, and we'll address them in the Q&A section. In addition, please feel free to raise your hand to ask a question as well. We would ask that all questions only have a minimum of two parts, and any additional questions, please re-enter the queue. Now, I would like to hand the call to our President Director and CEO, Ibu Dian Siswarini, to discuss our Q1 2026 results and strategic initiatives. Ibu Dian.

Speaker #2: Also joining us are the Board of Directors of our subsidiary, Telkomsel. With us is the CEO and President Director, Bapak Nugroho, and the Director of Finance and Risk Management, Bapak Daru Mulyawan.

Speaker #2: The Director of Sales, Bapa Susatio, and the Director of Marketing, Lionel Cheng. Please feel free to write any questions in the chat box during the call, and we'll address them in the Q&A section.

Speaker #2: In addition, please feel free to raise your hand to ask a question as well. We ask that all questions have a minimum of two parts, and for any additional questions, please re-enter the queue.

Speaker #2: Now, I would like to hand the call to our President-Director and CEO, Ibu Dian Sisorini, to discuss our first quarter 2026 results and strategic initiatives.

Speaker #2: Ibu Dian?

Speaker #3: Thank you, Bret. Good afternoon, everyone, and thank you for joining. I think it is important to provide a macro update beyond what we saw in the first quarter of 2026, as the current economic situation remains fluid.

Dian Siswarini: Thank you, Brad. Good afternoon, everyone, and thank you for joining. I think it is important to provide a macro update beyond what we saw in Q1 2026, as the current economic situation remains fluid. Recently, we have seen the government working to implement good policy as BI raised rates by 50 bps. We show the formation of other entities that, if executed properly, should help the government increase revenues. While GDP increased by 5.6% in the quarter, we are cautious. At first, the base effect was of a weak Q1 2025. Second, we have seen some weakness in consumer confidence data and retail sales outside of the seasonal impact from the festive season. Moreover, we believe there is potential for the rupiah's recent performance to impact our CapEx and operating costs, although today we are not yet seeing an impact.

Dian Siswarini: Thank you, Bret. Good afternoon, everyone, and thank you for joining. I think it is important to provide a macro update beyond what we saw in Q1 2026, as the current economic situation remains fluid. Recently, we have seen the government working to implement good policy as BI raised rates by 50 bps. We show the formation of other entities that, if executed properly, should help the government increase revenues. While GDP increased by 5.6% in the quarter, we are cautious. At first, the base effect was of a weak Q1 2025. Second, we have seen some weakness in consumer confidence data and retail sales outside of the seasonal impact from the festive season. Moreover, we believe there is potential for the rupiah's recent performance to impact our CapEx and operating costs, although today we are not yet seeing an impact.

Speaker #3: Recently, we have seen the government working to implement good policy as the IRA rates by 50 bps, and we saw the formation of other entities that, if executed properly, should help the government increase revenues.

Speaker #3: While GDP increased by 5.6% in the quarter, we are cautious at first. The best effect was of a weak first quarter 2025. And second, we have seen some weakness in consumer confidence data and retail sales outside of the seasonal impact from the festive season.

Speaker #3: Moreover, we believe there is potential for the rupiah's recent performance to impact our CapEx and operating costs. Also, to date, we are not yet seeing an impact.

Speaker #3: Furthermore, inflation has picked up year-on-year, but for the most part, it is due to low base effect figures. We will be cautious in the coming months of imported inflation due to the war in the Middle East and the risk of an impact from El Niño.

Dian Siswarini: Furthermore, inflation has picked up year on year, but for the most part, it is due to low base effect figures. We will be cautious in the coming months of imported inflation due to the war in the Middle East and the risk of an impact from El Niño. Despite this current cautious period, we continue to see opportunities for market repair to continue. Next slide. Given the short period between our 2025 results and the Q1 2026 results, I will provide a more abbreviated update on our progress in executing our TLKM 30 transformation strategy. We continue to implement our TLKM 30 strategy as we build the foundation for the future and create an environment for improved corporate performance.

Speaker #3: Despite this current cautious period, we continue to see opportunities for market repair to continue. Next slide. Given the short period between our 2025 results and the first quarter 2026 results, I will provide a more abbreviated update on our progress in executing our Telkom 30 transformation strategy.

Speaker #3: We continue to implement our Telkom 30 strategy as we build the foundation for the future and create an environment for improved corporate performance. Over the last 12 months, we have achieved many initiatives toward our four transformational pillars: operational and service excellence, streamlining of assets, unlocking value, and driving a modus operandi shift.

Dian Siswarini: Over the last 12 months, we have achieved many initiatives towards our four transformational pillars of operational and service excellence, streamlining of assets, unlocking value, and driving modus operandi shift. I would like to spend the next few slides during this earning call to provide an update on our progress and achievements to date. In Q1 2026, we saw our operating cash flow increase by 3.1% year on year as we continue to implement Totex efficiencies along with improved collection discipline. Moreover, our free cash flow to the firm increased by 15.5% in the trailing 12-month period, as we see improving operating cash flows and more efficient CapEx outflows. Additionally, our ERP program will move to its next phase in H2 2026, which will focus on employees at our subsidiaries, where we believe there is an opportunity for further take-up.

Speaker #3: I would like to spend the next few slides during this earnings call to provide an update on our progress and achievements to date. In the first quarter of 2026, we saw our operating cash flow increase by 3.1% year on year, as we continue to implement TOTEX efficiencies along with improved collection discipline.

Speaker #3: Moreover, our free cash flow to the firm increased by 15.5% in the trailing 12-month period, as we see improving operating cash flows and more efficient CapEx outflows.

Speaker #3: Additionally, our ERP program will move to its next phase in the second half of 2026, which will focus on employees at our subsidiaries, where we believe there is an opportunity for further take-up.

Speaker #3: In the meantime, we continue moving forward with our full government reset, focusing on strengthening internal controls that will allow us to invest more competitively in our network assets.

Dian Siswarini: In the meantime, we continue moving forward with our full governance reset, focusing in strengthening internal controls that will allow us to invest more competitively in our network assets. Moreover, at Telkomsel, not only has ARPU continued to increase to over IDR 45,100 at 31 March, the exit month ARPU was over IDR 47,000. Standalone digital business data revenue increased over 13% year on year to IDR 17.1 trillion, all driving EBITDA margin to nearly 48% at Telkomsel. On streamlining, our initiatives continue to progress with the completed sale of AdMedika, TelkoMedika today. We have plans in place that will likely lead to one additional streamlining announcement by the end of Q2 2026, while two others are quite close.

Speaker #3: Moreover, at Telkomsel, not only has ARPU continued to increase to around 45,100 rupiah, up 31%, but the exceedment ARPU was offered at 47,000 rupiah.

Speaker #3: Standalone digital business data revenue increased over 13% year-on-year, to 17.1 trillion rupiah, all driving EBITDA margin to nearly 48% at Telkomsel.

Speaker #3: On streamlining, our initiatives continue to progress, with the completed sale of Admenica Telecomedica today. We have plans in place that will likely lead to one additional streamlining announcement by the end of the second quarter 2026, while two others are quite close.

Speaker #3: Through these transactions, we also expect an impact of increased workforce efficiency, as Admenica and Telcomedica have run at 100 FTE and offer 1,200 outsourced or contracted employees to a rightful owner.

Dian Siswarini: Through these transactions, we also expect an impact of increased workforce efficiency as AdMedika and TelkoMedika, we have around 800 FTE and over 1,200 outsourced or contracted employees to a rightful owner. Moreover, we have focused on better management of our CapEx spending, as more than 96% of deployed CapEx was for core business segments, namely B2C and B2B infra. Our progress on our third pillar, unlocking value, is evident as we anticipate stage 2 of the InfraNexia asset transfer to be completed in Q3 2026. We have noted that we will focus on industry consolidation opportunities through full year 2026, followed by bringing in a strategic partner for the fiber business.

Speaker #3: Moreover, we have focused on better management of our CapEx spending, as more than 96% of deployed CapEx was for core business segments, namely B2C and B2B infra.

Speaker #3: Our progress on our third pillar, unlocking value, is evident as we anticipate stage two of the infrastructure asset transfer to be completed in the third quarter of 2026.

Speaker #3: We have noted that we will focus on industry consolidation opportunities through full-year 2026, followed by bringing in a strategic partner for the fiber business.

Speaker #3: We continue to see solid progress in identifying a strategic partner to enter our data center business, as that process has continued to move forward.

Dian Siswarini: We continue to see solid progress in identifying a strategic partner to enter our data center business, as that process has continued to move forward. To date, we have already shortlisted potential foreign strategic partners that could acquire up to 70% of this business. In Q1 2026, the modus operandi safe pillar progress is reflected in our reported financials as our segment reporting has been reclassified to be clearer and allow investors to value these business segments more appropriately while enhancing the transparency into each segment's performance. As we continue the transformation process, we expect value to be realized. Our end-state structure with a lower headcount, efficient holdco, and clear, transparent opco setup is coming into focus. In achieving this, we will continue to streamline and move forward with our unlocking value initiatives.

Speaker #3: To date, we have already shortlisted potential strategic partners that could acquire up to 70% of this business. In the first quarter of 2026, the modus operandi shift pillar progress is reflected in our reported financials, as our segment reporting has been reclassified to be clearer and to allow investors to value this business segment more appropriately, while enhancing transparency into each segment's performance.

Speaker #3: As we continue the transformation process, we expect value to be realized. Our end-state structure, which allows for lower headcount, efficient whole-core, and a clear, transparent offer setup, is coming into focus.

Speaker #3: In achieving this, we will continue to streamline and move forward with our unlocking value initiatives. Our AGM is scheduled for next week, June 8, and we should be able to confirm an attractive dividend for investors as we continue to focus on total shareholder return, which is an important driver of BOD KPIs as well.

Dian Siswarini: Our AGM is scheduled for next week, 8 June, and we should be able to confirm an attractive dividend for investors as we continue to focus on total shareholder returns, which is an important driver of BOD KPIs as well. I'm excited to speak about the Telkomsel performance as we continue to see positive developments reflecting a clear market repair strategy. We do not see this only depicted in ARPU, which increased by 6.4% year on year to around IDR 45,000 and up 0.4% Q on Q rather than the increase in data revenues. Based on our internal analysis and the publicly released data of our peers, we note that our data revenue increased year on year by 13.5% at Telkomsel, which we believe is the highest in the industry.

Speaker #3: I'm excited to speak about the TELCOM Cell performance as we continue to see positive developments reflecting a clear market repair strategy. We do not see this only depicted in ARPU, which increased by 6.4% year on year to around 45,000 rupiah, and up 0.4% Q on Q, rather than the increase in data revenues, based on our internal analysis and the publicly released data of our peers, we note that our data revenue increased year on year by 13.5% at TELCOM Cell, which we believe is the highest in the industry.

Speaker #3: Moreover, we are seeing a sizable improvement in the length of stay of customers, as those staying 12 months or longer now account for nearly 90% of the total.

Dian Siswarini: Moreover, we are seeing a sizable improvement in the length of stay of customers as those staying 12 months or longer are now nearly 90% of total, a sizable increase year-on-year. We see this as a validation of the focus of Telkomsel to limit the number of rotational churners. Mobile revenue growth reflects continued improving market conditions and the impact of industry market repair initiatives. Moreover, these strong results were met with minimal decline in subscribers as our customer base decreased by 1.5% Q-on-Q to 153.7 million from 156.1 million, primarily a result of decline in rotational churners that I mentioned above.

Speaker #3: A sizable increase year-on-year. We see this as a validation of the focus of Telkomsel to limit the number of rotational churners.

Speaker #3: Mobile revenue growth reflects continued improving market conditions and the impact of industry market repair initiatives. Moreover, the strong results were met with minimal decline in subscribers, as our customer base decreased by 1.5% quarter on quarter to 153.7 million, from 156.1 million.

Speaker #3: This is primarily a result of the decline in rotational churners that I mentioned above. In addition, the pricing strategies we have implemented focus on changes to pricing, quota, and term, along with product simplification, and are reflected in their support of our data yield.

Dian Siswarini: In addition, the pricing strategies that we have implemented focus on changes to pricing, quota, and term, along with product simplification, and are reflected in their supporting of our data yield, which at Q1 2026 stood at IDR 3.12 per MB, representing an 11% year-on-year increase. Historically, Q1 ARPU is seasonally weaker. However, the March monthly exit ARPU was quite strong at over IDR 47,000, likely supported by the festive season. As this now falls into Q1, we will be a little cautious on the Q2 ARPU expansion. Mobile revenue grew 3.3% year-on-year with our digital business revenue driving this growth. As digital business revenue increased by 8.8% year-on-year, it offset the year-on-year decline in FaaS and legacy revenue, which decreased by IDR 388 billion and IDR 664 billion respectively.

Speaker #3: Which, at the first quarter of 2026, stood at 3.12 rupiah per MB, representing an 11% year-on-year increase. Historically, first quarter ARPU is generally weaker; however, the March monthly exit ARPU was quite strong at over 47,000 rupiah.

Speaker #3: Likely supported by the festive season. As this now falls into the first quarter, we will be a little cautious on the second quarter ARPU expansion.

Speaker #3: Mobile revenue grew 3.3% year on year, with our digital business revenue driving this growth. As digital business revenue increased by 8.8% year on year, it offset the year-on-year decline in FAST and legacy revenue, which decreased by Rp398 billion and Rp664 billion, respectively.

Speaker #3: The underlying momentum remained solid, and when normalized for the fewer days in Q1, both digital business revenue and payload per day trends are increasing quarter on quarter.

Dian Siswarini: The underlying momentum remains solid and when normalized for the fewer days in Q1, both digital business revenue and payload per day trends are increasing Q on Q. Moreover, voice revenues have decreased to slightly above 3% of total mobile revenues from 6% in the year ago period. I would note that as this detractor from revenue growth becomes a smaller contributor, it should mitigate pressure on revenue expansion going forward. Through our analysis, we note that while our peers' data traffic is increasing and closing the gap with us, we do not see this being reflected in industry data revenue market share, which remains the same. Payload increased 2.3% year on year in line with what we anticipated as market repair takes effect.

Speaker #3: Moreover, voice revenues have decreased to slightly above 3% of total mobile revenues, from 6% in the year-ago period. I would note that as this detractor from revenue growth becomes a smaller contributor, it should mitigate pressure on revenue expansion.

Speaker #3: Going forward, through our analysis, we note that while our peers' data traffic is increasing and closing the gap with us, we do not see this being reflected in industry data revenue market share, which remains the same.

Speaker #3: Payload increased 2.3% year-on-year, in line with what we anticipated as market repair takes effect. Disciplined pricing will naturally moderate value and volume growth in the near term, and we are fully comfortable with that trade-off given the strong ARPU trajectory and improving revenue quality we are delivering in return.

Dian Siswarini: Disciplined pricing will naturally moderate volume growth in the near term, we are fully comfortable with that trade-off given the strong ARPU trajectory and improving revenue quality we are delivering in return. Furthermore, rupiah per megabyte increased by more than 8% to IDR 3.12 per MB compared to IDR 2.89 per MB in the year ago period as we continue to see through market repair. Our other segments, B2B Infra, B2B ICT, and International, reported total segment gross revenue before elimination of IDR 23.2 trillion. Across all three segments, there are future opportunities to unlock value. We anticipate through an organic growth and identifying strategic partners that we can further unlock the value of our IDR 85.1 trillion in B2B infrastructure assets. In the international business, we continue to see strong demand, which will drive future growth.

Speaker #3: Furthermore, rupiah per megabyte increased by more than 8% to 3.12 rupiah per MB, compared to 2.89 rupiah per MB in the year-ago period.

Speaker #3: As we continue to see through market repair, our other segments—B2B infra, B2B ICT, and International—reported total segment gross revenue before elimination of Rp23.2 trillion.

Speaker #3: Across all three segments, there are future opportunities to unlock value. We anticipate, through organic growth and by identifying strategic partners, that we can further unlock the value of our Rp85.1 trillion in B2B infrastructure assets.

Speaker #3: In the international business, we continue to see strong demand, which will drive future growth, while in the B2B ICT business, we are restructuring and delaying this business to drive higher margins, eliminate overlapping product offerings across subsidiaries, and improve our competitive position in this segment.

Dian Siswarini: While at B2B ICT business, we are restructuring and delayering this business to drive higher margins, eliminate overlapping product offerings across subsidiaries, and improve our competitive position in this segment. I would now like to turn the presentation over to Angelo, our CFO. Please, Angelo.

Speaker #3: I would now like to turn the presentation over to Angela, our CFO. Please, Angela.

Speaker #2: Thank you, Budian. I would like to begin by discussing our key financial highlights in greater detail. Our consolidated revenue is in line with our FY26 guidance, which is up 1.5% year-on-year.

Arthur Angelo Syailendra: Thank you, Budian. I would like to begin by discussing our key financial highlights in greater detail. Our consolidated revenue are in line with our FY2026 guidance, which is up 1.5% year-on-year to IDR 37.2 trillion. The continued success of market repair at Telkomsel, driven by increasing data revenue, helped to increase revenues at Telkomsel by 1.3% on a year-on-year basis, offsetting the decrease in voice and fixed broadband. This quarter is a tale of two sides, our Telkomsel business strength and the work in progress of transformation initiative at our non-Telkomsel subsidiaries. The EBITDA margin at Telkomsel increased to 47.6% as the growth in revenues was offset by improving cost controls. However, at the holdco level, we saw O&M costs increasing by 15.5%, which contribute to the overall cost growth.

Angelo Syailendra: Thank you, Budian. I would like to begin by discussing our key financial highlights in greater detail. Our consolidated revenue are in line with our FY2026 guidance, which is up 1.5% year-on-year to IDR 37.2 trillion. The continued success of market repair at Telkomsel, driven by increasing data revenue, helped to increase revenues at Telkomsel by 1.3% on a year-on-year basis, offsetting the decrease in voice and fixed broadband. This quarter is a tale of two sides, our Telkomsel business strength and the work in progress of transformation initiative at our non-Telkomsel subsidiaries. The EBITDA margin at Telkomsel increased to 47.6% as the growth in revenues was offset by improving cost controls. However, at the holdco level, we saw O&M costs increasing by 15.5%, which contribute to the overall cost growth.

Speaker #2: To Rp 37.2 trillion. The continued success of market repair at Telkomsel, driven by increasing data revenue, helped to increase revenues at Telkomsel by 1.3% on a year-on-year basis.

Speaker #2: Offsetting the decrease in voice and fixed broadband, this quarter is a tale of two sides: our Telkomsel business strength, and the work in progress of transformation initiatives at our non-Telkomsel subsidiaries.

Speaker #2: The EBITDA margin at Telkomsel increased to 47.6%, as the growth in revenues was offset by improving cost controls. However, at the whole company level, we saw O&M costs increasing by 15.5%, which contributed to the overall cost growth.

Speaker #2: We would note this was offset on the revenue side by a sizable increase in revenues at our online gaming business, which has a margin that is negligible.

Arthur Angelo Syailendra: We would note this was an offset on the revenue side by a sizable increase in revenues, but at our online gaming business, which have a margin that is negligible. Overall O&M expenses increased 15.5% year-on-year. We anticipate this growth rate will slow in the remaining quarters. This cost pressure led to our reported EBITDA margin at the holdco declining to 48.3%. On the next slide, I would like to talk more about the net income adjustment to calculate our normalized net income, as normalized net income at Telkomsel was up 7.1% year-on-year, while consolidated normalized net income decreased at 3.7% year-on-year. There are some adjustments we would make to our reported net income based on items that we believe are non-core.

Angelo Syailendra: We would note this was an offset on the revenue side by a sizable increase in revenues, but at our online gaming business, which have a margin that is negligible. Overall O&M expenses increased 15.5% year-on-year. We anticipate this growth rate will slow in the remaining quarters. This cost pressure led to our reported EBITDA margin at the holdco declining to 48.3%. On the next slide, I would like to talk more about the net income adjustment to calculate our normalized net income, as normalized net income at Telkomsel was up 7.1% year-on-year, while consolidated normalized net income decreased at 3.7% year-on-year. There are some adjustments we would make to our reported net income based on items that we believe are non-core.

Speaker #2: Overall O&M expenses increased 15.5% year-on-year. We anticipate this growth rate will slow in the remaining quarters. This cost pressure led to our reported EBITDA margin at the whole company declining to 48.3%.

Speaker #2: On the next slide, I would like to talk more about the net income adjustment to calculate our normalized net income as normalized net income at TELCOM Cell was up 7.1% year on year, while consolidated normalized net income decreased at 3.7% year on year.

Speaker #2: There are some adjustments we would make to our reported net income based on items that we believe are non-core. First, due to the accounting policy change in our FY25 results that changed the useful life of some of our non-network assets, we experienced a Rp498 billion increase in depreciation expense that will likely persist for 2026, and in 2027 will become accretive to our net income.

Arthur Angelo Syailendra: Due to the accounting policy change in our FY25 results that changed the useful life of some of our non-network assets, we experienced a IDR 498 billion increase in depreciation expense that will likely persist for 2026, and in 2027 will become accretive to our net income. At our Telkomsel subsidiary, the investment in GoTo is impacted by the mark-to-market adjustment as the share price decreased in the quarter. This had an impact on net income of IDR 309 billion. The tax impact is the difference of IDR 180 billion in additional taxes between Telkom Group and TIF following the Phase 1 infra co transaction. Telkom Group has a tax rate of 19%, while TIF has a tax rate of 22%. The minority interest adjustment is normalized in line with Telkomsel GoTo investment normalization.

Angelo Syailendra: Due to the accounting policy change in our FY25 results that changed the useful life of some of our non-network assets, we experienced a IDR 498 billion increase in depreciation expense that will likely persist for 2026, and in 2027 will become accretive to our net income. At our Telkomsel subsidiary, the investment in GoTo is impacted by the mark-to-market adjustment as the share price decreased in the quarter. This had an impact on net income of IDR 309 billion. The tax impact is the difference of IDR 180 billion in additional taxes between Telkom Group and TIF following the Phase 1 infra co transaction. Telkom Group has a tax rate of 19%, while TIF has a tax rate of 22%. The minority interest adjustment is normalized in line with Telkomsel GoTo investment normalization.

Speaker #2: At our Telkomsel subsidiary, the investment in GOTO is impacted by the mark-to-market adjustment as the share price decreased in the quarter. This had an impact on net income of Rp309 billion.

Speaker #2: In addition, the tax impact is the difference of Rp180 billion in additional taxes between TELKOM Group and TIFF, following the phase one Infraco transaction.

Speaker #2: TELCOM Group has a tax rate of 19%, while TIFF has a tax rate of 22%. The minority interest adjustment is normalized in line with TELCOM Cell GOTO investment normalization.

Speaker #2: All in, we calculate normalized net income as IDR 5.1 trillion, representing a decrease on a consolidated basis of 3.7% year-on-year. The mapping of the revenues by new business segments is broken down more clearly in this slide.

Arthur Angelo Syailendra: All in, we calculate normalized net income as IDR 5.1 trillion, or a decrease on a consolidated basis of 3.7% on year-on-year. The mapping of the revenues by new business segments is broken down more clearly in this slide. I would emphasize the disclosure of our inter-segment and external revenues, where the total gross revenue in Q1 2026 totaling IDR 58.6 trillion, with IDR 21.4 trillion from inter-segment revenues. The inter-segment revenues are generated through internal transaction between subsidiaries, while external comes from the non-group related. As we look to unlock business value, the sizable inter-segment revenues in B2B infra will be monetized. Through opening up access to our existing infra, we can also tap the opportunity to generate additional sizable external revenue, which will further amplify our business economics.

Angelo Syailendra: All in, we calculate normalized net income as IDR 5.1 trillion, or a decrease on a consolidated basis of 3.7% on year-on-year. The mapping of the revenues by new business segments is broken down more clearly in this slide. I would emphasize the disclosure of our inter-segment and external revenues, where the total gross revenue in Q1 2026 totaling IDR 58.6 trillion, with IDR 21.4 trillion from inter-segment revenues. The inter-segment revenues are generated through internal transaction between subsidiaries, while external comes from the non-group related. As we look to unlock business value, the sizable inter-segment revenues in B2B infra will be monetized. Through opening up access to our existing infra, we can also tap the opportunity to generate additional sizable external revenue, which will further amplify our business economics.

Speaker #2: I would emphasize the disclosure of our intersegment and external revenues, where the total gross revenue in Q1 2026 totaled IDR 58.6 trillion, with IDR 21.4 trillion coming from intersegment revenues.

Speaker #2: The intersegment revenues are generated through internal transactions between subsidiaries, while external comes from non-group related sources. As we look to unlock business value, the sizable intersegment revenues in B2B Infra will be monetized.

Speaker #2: By opening up access to our existing infrastructure, we can also tap the opportunity to generate additional sizable external revenue, which will further amplify our business economics.

Speaker #2: If we disaggregate the gross revenue by segment, it becomes evident that there is a massive value-unlocking opportunity in our B2B infra segment, as we have nearly IDR 16.3 trillion in gross revenue in Q1 2026.

Arthur Angelo Syailendra: If we disaggregate the gross revenue by segment, it become evident that there is a massive value unlocking opportunity in our B2B infra segment, as we have nearly IDR 16.3 trillion in gross revenue in Q1 2026, and nearly IDR 14 trillion of that comes from our internal. This is led by our fiber business, with more than 85% of its revenue coming from Telkomsel. As we transform the business, we believe the primary focus should be on our cash flow generation and ability to grow this across the business segments. Our operating cash flow increased 2.9% year-on-year to IDR 64.4 trillion, supported by the strength of our ARPU increase and the depth of our prepaid business. In addition, the free cash flow to the firm increased by 15.5% on the trailing 12 months basis to IDR 43.3 trillion.

Angelo Syailendra: If we disaggregate the gross revenue by segment, it become evident that there is a massive value unlocking opportunity in our B2B infra segment, as we have nearly IDR 16.3 trillion in gross revenue in Q1 2026, and nearly IDR 14 trillion of that comes from our internal. This is led by our fiber business, with more than 85% of its revenue coming from Telkomsel. As we transform the business, we believe the primary focus should be on our cash flow generation and ability to grow this across the business segments. Our operating cash flow increased 2.9% year-on-year to IDR 64.4 trillion, supported by the strength of our ARPU increase and the depth of our prepaid business. In addition, the free cash flow to the firm increased by 15.5% on the trailing 12 months basis to IDR 43.3 trillion.

Speaker #2: And nearly IDR 14 trillion of that comes from our internal sources. This is led by our fiber business, with more than 85% of its revenue coming from Telkomsel.

Speaker #2: As we transform the business, we believe the primary focus should be on our cash flow generation and our ability to grow this across the business segments.

Speaker #2: Our operating cash flow increased 2.9% year-on-year to IDR 64.4 trillion, supported by the strength of our ARPU increase and the depth of our prepaid business.

Speaker #2: In addition, the free cash flow to the firm increased by 15.5% on a trailing twelve months basis to IDR 43.3 trillion, and given the limited leverage employed, we see a strong capacity for our company to pay elevated dividends as we continue to transform the business, despite the recent movement in our net income.

Arthur Angelo Syailendra: Given the limited leverage employed, we see a strong capacity for our company to pay elevated dividends as we continue to transform the business despite the recent movement in our net income. We would strongly suggest looking at this metric in analyzing our dividend payment capacity. As we can see, our free cash flow to equity holders of IDR 39.6 trillion is well above the dividends we have paid and implies a strong capacity to pay elevated dividends in 2026 and beyond. I would also note that this is prior to minority interest adjustment. In Q1 2026, greater than 96% of our CapEx was deployed toward our core business lines of B2C and B2B infra. Since the current management team joined about a year ago, we have made efforts to manage CapEx spending as we want to implement a discipline and more efficient costing structure.

Angelo Syailendra: Given the limited leverage employed, we see a strong capacity for our company to pay elevated dividends as we continue to transform the business despite the recent movement in our net income. We would strongly suggest looking at this metric in analyzing our dividend payment capacity. As we can see, our free cash flow to equity holders of IDR 39.6 trillion is well above the dividends we have paid and implies a strong capacity to pay elevated dividends in 2026 and beyond. I would also note that this is prior to minority interest adjustment. In Q1 2026, greater than 96% of our CapEx was deployed toward our core business lines of B2C and B2B infra. Since the current management team joined about a year ago, we have made efforts to manage CapEx spending as we want to implement a discipline and more efficient costing structure.

Speaker #2: We would strongly suggest looking at this metric in analyzing our dividend payment capacity. As we can see, our free cash flow to equity holders of IDR 39.6 trillion is well above the dividends we have paid and implies a strong capacity to pay elevated dividends in 2026 and beyond.

Speaker #2: I would also note that this is prior to the minority interest adjustment. In the first quarter of 2026, more than 96% of our capex was deployed toward our core business lines of B2C and B2B infra.

Speaker #2: Since the current management team joined about a year ago, we have made efforts to manage CapEx spending, as we want to implement a disciplined and more efficient costing structure.

Speaker #2: We believe there is more than just pricing that matters in implementing our capex spending. In the first quarter of 2026, Telkom Group realized capex for PPNE and intangibles reached Rp 4.9 trillion, which equates to 13.2% of our total revenue.

Arthur Angelo Syailendra: We believe there is more than just pricing that matters in implementing our CapEx spending. In Q1 2026, Telkom Group realized CapEx of PP&E and intangibles reached IDR 4.9 trillion, which equates to 13.2% of our total revenue. This represents a decrease of 13.7% on year-on-year basis in absolute spending. That led to the C2R ratio decreasing by 230 basis point. We would note that the TIF spin-off likely had an impact on CapEx. We anticipate TIF CapEx to increase as the year progresses. Now, let's review our 2026 guidance and our achievement through Q1 2026 on the next slide. Through Q1 2026, we are in line with our revenue and CapEx guidance. Slightly below on our EBITDA margin guidance. Our revenue were up 1.5%, in line with 1.1% to 3% growth guidance.

Angelo Syailendra: We believe there is more than just pricing that matters in implementing our CapEx spending. In Q1 2026, Telkom Group realized CapEx of PP&E and intangibles reached IDR 4.9 trillion, which equates to 13.2% of our total revenue. This represents a decrease of 13.7% on year-on-year basis in absolute spending. That led to the C2R ratio decreasing by 230 basis point. We would note that the TIF spin-off likely had an impact on CapEx. We anticipate TIF CapEx to increase as the year progresses. Now, let's review our 2026 guidance and our achievement through Q1 2026 on the next slide. Through Q1 2026, we are in line with our revenue and CapEx guidance. Slightly below on our EBITDA margin guidance. Our revenue were up 1.5%, in line with 1.1% to 3% growth guidance.

Speaker #2: This represents a decrease of 13.7% on a year-on-year basis in absolute spending, which led to the C2R ratio decreasing by 230 basis points. We would note that the TIFF spin-off likely had an impact on capex, and we anticipate TIFF capex to increase as the year progresses.

Speaker #2: Now, let's review our 2026 guidance and our achievement through first quarter 2026 on the next slide. Through first quarter 2026, we are in line with our revenue and CapEx guidance, and slightly below on our EBITDA margin guidance.

Speaker #2: Our revenue was up 1.5%, in line with our 1.1% to 3% growth guidance. Our EBITDA margin was 48.8%, which is below our greater than 50% guidance.

Arthur Angelo Syailendra: Our EBITDA margin was 48.8%, which is below our greater than 50% guidance. Our C2R was 13.2%, which is well below our 17% to 19% guidance. We are currently making no adjustment to our guidance at this time, as all results are in line with our expectations. There are a few items we would like to point out. First, on the EBITDA margin, we are working to allocate costs more accurately on a quarterly basis, and in doing so, we now apply revenue assurance on quarterly basis. We are also continuously looking to improve our O&M costs, especially for entities with relatively lower EBITDA margin in Q1 2026, which then contributed to a lower consolidated EBITDA margin.

Angelo Syailendra: Our EBITDA margin was 48.8%, which is below our greater than 50% guidance. Our C2R was 13.2%, which is well below our 17% to 19% guidance. We are currently making no adjustment to our guidance at this time, as all results are in line with our expectations. There are a few items we would like to point out. First, on the EBITDA margin, we are working to allocate costs more accurately on a quarterly basis, and in doing so, we now apply revenue assurance on quarterly basis. We are also continuously looking to improve our O&M costs, especially for entities with relatively lower EBITDA margin in Q1 2026, which then contributed to a lower consolidated EBITDA margin.

Speaker #2: Our C2R was 13.2%, which is well below our 17–19% guidance. We are currently making no adjustment to our guidance at this time, as all results are in line with our expectations.

Speaker #2: There are a few items we would like to point out. First, on the EBITDA margin, we are working to allocate costs more accurately on a quarterly basis.

Speaker #2: And in doing so, we now apply revenue assurance on a quarterly basis. We are also continuously looking to improve our O&M costs, especially for entities with relatively lower EBITDA margin in the first quarter of 2026.

Speaker #2: Which then contributed to a lower consolidated EBITDA margin. On our C2R outlook, we plan to review our FY2026 target of 17% to 19% in the second quarter of 2026, and following that review, we will provide updated guidance at that time, as the currency depreciation could have an impact on our investment costs.

Arthur Angelo Syailendra: On our 2R outlook, we plan to review our FY2026 target of 17% to 19% in Q2 2026, and following that review, we will provide updated guidance at that time as the currency depreciation could have an impact on our investment costs. I would now like to turn the call back over to Brad to manage the Q&A. Thank you.

Angelo Syailendra: On our 2R outlook, we plan to review our FY2026 target of 17% to 19% in Q2 2026, and following that review, we will provide updated guidance at that time as the currency depreciation could have an impact on our investment costs. I would now like to turn the call back over to Brad to manage the Q&A. Thank you.

Speaker #2: I would now like to turn the call back over to Brett to manage the Q&A. Thank you.

Brad: Thank you, Pak Angelo. Just wanted to make a quick announcement. Our CEO, Dian, apologizes she had to go. The next question, coming from Satyam Mittal, normalized EBITDA year-over-year, excluding one-offs. When we look at the normalized EBITDA, if you look into the presentation as well on the earnings call, if we could flip back two slides, I think it's number 16. There's three main issues that are impacting our normalized EBITDA. We can look at this from the impact on the net income. These are the only one-offs that we saw in the quarter. It's on the normalized net income slide. If we look at them, these were all impacts to our net income. There was nothing that impacted our EBITDA except for a very small cost associated with the ERP program.

Bret Ginesky: Thank you, Pak Angelo. Just wanted to make a quick announcement. Our CEO, Dian, apologizes she had to go. The next question, coming from Satyam Mittal, normalized EBITDA year-over-year, excluding one-offs. When we look at the normalized EBITDA, if you look into the presentation as well on the earnings call, if we could flip back two slides, I think it's number 16. There's three main issues that are impacting our normalized EBITDA. We can look at this from the impact on the net income. These are the only one-offs that we saw in the quarter. It's on the normalized net income slide. If we look at them, these were all impacts to our net income. There was nothing that impacted our EBITDA except for a very small cost associated with the ERP program.

Speaker #1: Thank you, Pat, Angelo. I just wanted to make a quick announcement. Our CEO of UDIAN apologizes; she had to go to Dadan Tara for a meeting.

Speaker #1: But the rest of the BOD will be here to answer any of the questions. So, we'd now like to move to the Q&A section of the call.

Speaker #1: As a reminder, please type your question into the Q&A chat box, or raise your hand. For each analyst, please limit your question to a maximum of two parts.

Speaker #1: And if you have additional questions, please re-enter the queue or raise your hand again. We will now begin the question-and-answer section. Our moderator, Limi, will organize the questions.

Speaker #3: Hello, Matt. Ladies and gentlemen, we will now begin the Q&A session. As a reminder, kindly type your questions in the chat box.

Speaker #3: And click on the raise hand button for follow-up. In the meantime, we have already received questions that have been texted anonymously. The question is more on the CapEx guidance.

Speaker #3: This is from our investors. Can you share the outlook for the capex guidance, especially given the weakness in the currency?

Speaker #1: Okay. Our approach to capex remains disciplined and demand-driven. The current capex profile reflects investment optimization and timing, rather than any change in our commitment to network leadership.

Speaker #1: I think, going forward, our approach to capex remains disciplined and, like I said, demand-driven, right? We continue to prioritize investment in our network quality, capacity, convergence, and selective 5G expansion.

Speaker #1: At Telkomsel, we maintain our capex guidance of approximately 11 to 12 percent of Telkomsel revenue, and we will continue to allocate capital prudently to support our B2C growth.

Speaker #1: Thank you. For the next question, coming from Sachin Mittal: normalized EBITDA year-over-year, excluding one-offs. When we look at the normalized EBITDA, if you look into the presentation as well, on the earnings call—if we could flip back.

Speaker #1: There are two slides. It's number 16. There are three main issues that are impacting our normalized EBITDA. So we can look at this from the impact on net income.

Speaker #1: These are the only one-offs that we saw in the quarter. And this is on the, sorry, on the normalized net income side. But if we look at them, these are all impacts to our net income.

Speaker #1: There was nothing that impacted our EBITDA except for a very small cost associated with the ERP program. It was only around 10 to 12 billion rupiah.

Brad: It was only less than, right around IDR 10 to 12 billion. Other than that, the only costs that were one-off were at the net income level, which we went through in the slide on the presentation showing the IDR 498 billion that impacts net income based on the depreciation expense. There was IDR 309 billion due to the GoTo share price decrease in the quarter. There was also about IDR 180 billion that was due to the tax impact from TIF moving from the holdco to the opco. The tax rate increasing from 19% to 22% there. As I mentioned, the only thing on the EBITDA side in this quarter would've been coming from a very small amount on the ERP. Moving to the next question, from Aurelia Barros. What is the outlook for gaming voucher revenue and costs? What are the margins of this business?

Bret Ginesky: It was only less than, right around IDR 10 to 12 billion. Other than that, the only costs that were one-off were at the net income level, which we went through in the slide on the presentation showing the IDR 498 billion that impacts net income based on the depreciation expense. There was IDR 309 billion due to the GoTo share price decrease in the quarter. There was also about IDR 180 billion that was due to the tax impact from TIF moving from the holdco to the opco. The tax rate increasing from 19% to 22% there. As I mentioned, the only thing on the EBITDA side in this quarter would've been coming from a very small amount on the ERP. Moving to the next question, from Aurelia Barros. What is the outlook for gaming voucher revenue and costs? What are the margins of this business?

Speaker #1: Other than that, the only costs that were one-off were at the net income level, which we went through in the slide on the presentation, showing the 498 billion that impacts net income based on the depreciation expense.

Speaker #1: There was 309 billion due to the GoTo share price decrease in the quarter. And then there was also about 180 billion that was due to the tax impact from TIFI moving from the holdco to the opco, the tax rate increasing from 19 percent to 22 percent there.

Speaker #1: But as I mentioned, the only thing on the EBITDA side in this quarter would have been coming from a very small amount on the ERP.

Speaker #1: Moving to the next question, from Aurelio Barros: What is the outlook for gaming voucher revenue and costs? What are the margins of this business?

Speaker #1: Lionel from Telkomsel will take this question.

Brad: Lionel from Telkomsel will take this question.

Bret Ginesky: Lionel from Telkomsel will take this question.

Speaker #4: Yeah, thank you very much for the question. For us, gaming revenue continues to be part of our overall portfolio—especially as it serves a certain need for our gaming subscribers, allowing them to get access to such games on an affordable basis.

Lionel Chng: Yeah. Thank you very much for the question. For us, gaming revenue continues to be part of our overall portfolio. Especially, it serves a certain need for our gaming subscribers, for them to be able to get deep access to such games at an affordable basis. However, we do not position them as a huge revenue driver because they are also highly thin in terms of the margins. So this is something that while we continue the efforts on, it will not be a revenue builder or a margin builder for us. Instead, we are focusing a lot more on a lot of our digital solutions in music, in AI, and also in education for us to build a more comprehensive portfolio. Thank you.

Speaker #4: However, we do not position them as a huge revenue driver because they also have very thin margins. So this is something that, while we continue our efforts on, it will not be a revenue builder or a margin builder for us.

Speaker #4: Instead, we're focusing a lot more on many of our digital solutions in music, in AI, and also in education, for us to build a more comprehensive portfolio.

Speaker #4: Thank you.

Speaker #1: Our revenue outlook from gaming vouchers is about Rp1.2 trillion, right? And we're making anywhere between 5 to 6 percent gross profit margin for this business.

Arthur Angelo Syailendra: Our revenue outlook from gaming voucher is about IDR 1.2 trillion, right? We're making anywhere between 5% to 6% GP margin for this business. In Q1, we have a strong demand for this, as I explained before. Yeah. It contribute a good revenue growth, but since the margin is thin, it would then cause an overall EBITDA margin for the whole quarter to be reduced. Thank you.

Angelo Syailendra: Our revenue outlook from gaming voucher is about IDR 1.2 trillion, right? We're making anywhere between 5% to 6% GP margin for this business. In Q1, we have a strong demand for this, as I explained before. Yeah. It contribute a good revenue growth, but since the margin is thin, it would then cause an overall EBITDA margin for the whole quarter to be reduced. Thank you.

Speaker #1: In the first quarter, we have a strong demand for this. And as I explained before, yeah, it contributes to good revenue growth. But since the margin is thin, it would then cause the overall EBITDA margin for the HoldCo to be reduced.

Speaker #1: Thank you. Sorry, we had a little technical difficulty. I think everything's fine now. Okay, the next question is coming from Piyush at HSBC. Two questions.

Brad: Sorry, we had a little technical difficulty. I think everything's fine now. Okay. The next question coming from Piyush, at HSBC. Two questions. The first one on the B2B ICT segment, went into EBITDA loss in Q2 2026 versus IDR 1.4 trillion EBITDA in Q1 2025. What led to the sharp fall? Outlook for the segment as well. The second question on the Telkomsel. What is the outlook for subscriber addition for mobile and IndiHome in 2026? Can you comment on competitive intensity in IndiHome segment and outlook for IndiHome? I think on the B2B ICT, maybe Angelo and Bu Vera can comment on that. Then on the Telkomsel, relating to the subscriber addition for mobile and IndiHome, Pak Lionel and team can work on that one.

Bret Ginesky: Sorry, we had a little technical difficulty. I think everything's fine now. Okay. The next question coming from Piyush, at HSBC. Two questions. The first one on the B2B ICT segment, went into EBITDA loss in Q2 2026 versus IDR 1.4 trillion EBITDA in Q1 2025. What led to the sharp fall? Outlook for the segment as well. The second question on the Telkomsel. What is the outlook for subscriber addition for mobile and IndiHome in 2026? Can you comment on competitive intensity in IndiHome segment and outlook for IndiHome? I think on the B2B ICT, maybe Angelo and Bu Vera can comment on that. Then on the Telkomsel, relating to the subscriber addition for mobile and IndiHome, Pak Lionel and team can work on that one.

Speaker #1: The first one, on the B2B ICT segment, went into EBITDA loss in Q2 '26 versus IDR 1.4 trillion EBITDA in Q2 '25. What led to the sharp fall?

Speaker #1: Outlook for the segment as well. And the second question, on Telkomsel, what is the outlook for subscriber additions for mobile and IndiHome in 2026?

Speaker #1: Can you comment on competitive intensity in the IndiHome segment and the outlook for IndiHome? I think on the B2B ICT, maybe Angelo and Buvera can comment on that.

Speaker #1: And then, on the Telkomsel, relating to the subscriber addition for mobile and IndiHome, Paulino and team can work on that one.

Speaker #5: Yeah, I can take the numerical question. The decline in the EBITDA of our B2B ICT business is essentially caused by four factors. One, we are more conservative on our revenue assurance.

Arthur Angelo Syailendra: Yeah, I can take the numerical question. The decline in EBITDA of our B2B ICT business is essentially caused by four factors. One, we are more conservative on our revenue assurance, and that led to some sort of lower revenue conversion. We also become more selective on our contract acquisition. We also have quite a bit of subsidiaries within this business line that we intend to streamline and therefore, not too aggressive in acquiring new contract. In addition to that, the margin pressure, given that this is a work in progress, during a restructuring period. We expect that this is something that will improve over time. Right? In Q1 2026, B2B ICT external revenue declined from IDR 3.8 trillion to about IDR 3.1 trillion. A meaningful decline of IDR 700 billion. This result in segment loss as the business undergoes transformation and consolidation.

Angelo Syailendra: Yeah, I can take the numerical question. The decline in EBITDA of our B2B ICT business is essentially caused by four factors. One, we are more conservative on our revenue assurance, and that led to some sort of lower revenue conversion. We also become more selective on our contract acquisition. We also have quite a bit of subsidiaries within this business line that we intend to streamline and therefore, not too aggressive in acquiring new contract. In addition to that, the margin pressure, given that this is a work in progress, during a restructuring period. We expect that this is something that will improve over time. Right? In Q1 2026, B2B ICT external revenue declined from IDR 3.8 trillion to about IDR 3.1 trillion. A meaningful decline of IDR 700 billion. This result in segment loss as the business undergoes transformation and consolidation.

Speaker #5: And that led to some sort of lower revenue conversion. We also became more selective in our contract acquisition. Additionally, we have quite a few subsidiaries within this business line that we intend to streamline.

Speaker #5: And therefore, not too aggressive in acquiring new contracts. In addition to that, the margin pressure—given that this is a work in progress during a restructuring period—we expect that this is something that will improve over time, right?

Speaker #5: In the first quarter of 2026, B2B ICT external revenue declined from Rp3.8 trillion to about Rp3.1 trillion, so a meaningful decline of Rp700 billion. And this resulted in a segment loss as the business undergoes transformation and consolidation.

Speaker #5: Looking ahead, we remain positive on the enterprise business as a key growth pillar. And I think this is a topic that is similar to other telcos in the world that, at some point, undergo some sort of transformation.

Arthur Angelo Syailendra: Looking ahead, we remain positive on enterprise business as a key growth pillar. I think this is a topic that is similar to other telco in the world that at some point undergoes some sort of transformation from telco to become digital telco. The establishment of Telkom Enterprise and the consolidation of our various enterprise subsidiaries are expected to improve execution, simplifying of our organization, and gradually profitability over time. Our long-term target of closer to about 20 something percent EBITDA margin, and around 20% revenue contribution to the group, from our B2B ICT business. Thank you.

Angelo Syailendra: Looking ahead, we remain positive on enterprise business as a key growth pillar. I think this is a topic that is similar to other telco in the world that at some point undergoes some sort of transformation from telco to become digital telco. The establishment of Telkom Enterprise and the consolidation of our various enterprise subsidiaries are expected to improve execution, simplifying of our organization, and gradually profitability over time. Our long-term target of closer to about 20 something percent EBITDA margin, and around 20% revenue contribution to the group, from our B2B ICT business. Thank you.

Speaker #5: From telco to becoming a digital telco. The establishment of our telecom enterprise and the consolidation of our various enterprise subsidiaries are expected to improve execution and simplify our organization.

Speaker #5: And gradually, profitability over time. Our long-term target is closer to about 20-something percent EBITDA margin and around 20 percent revenue contribution to the group from our B2B ICT business.

Speaker #5: Thank you.

Speaker #1: Okay, I'd like to comment. This is Lionel. I'd like to comment in terms of the two-part question: subscribers for mobile and IndiHome in 2026.

Lionel Chng: Okay. I'd like to comment. This is Lionel. I'd like to comment in terms of the two-part question. Subscribers for mobile and IndiHome in 2026, and then after that, some competitive activity or intensity in IndiHome. For mobile, we have been prioritizing not in terms of just maximizing subscriber count. We've been really focused in terms of taking care of our current base and making sure that it's healthy and also productive. ARPU is important, but also we have EBITDA as our North Star that we have been driving in the mobile base. Now, in addition to that, whatever we are seeing in the consumer mobile base is also a proactive cleanup ahead of the regulations that are coming in, focusing on quality over volume. This is reflected in the blended ARPU that we see remaining relatively stable at -0.4, despite the 1.5% decline in the subscriber base.

Speaker #1: And then after that, some competitive activity or intensity in IndiHome. So for mobile, we have been prioritizing not just maximizing subscriber count.

Speaker #1: We've been really focused on taking care of our current base and making sure that it's healthy and also productive. ARPU is important, but we also have EBITDA as our North Star that we have been driving in the mobile base.

Speaker #1: Now, in addition to that, whatever we are seeing in the consumer mobile base is also a proactive cleanup ahead of the regulations that are coming in, focusing on quality over volume.

Speaker #1: This is reflected in the blended ARPU that we see remaining relatively stable at minus 0.4%, despite the 1.5% decline in the subscriber base.

Speaker #1: There's also some seasonality that we see over there, but again, I'd like to emphasize that our main focus has been on taking care of our existing customer base and also prioritizing EBITDA.

Lionel Chng: There's also some seasonality that we see over there. Again, I'd like to emphasize our main focus has been in terms of taking care of our existing customer base and also prioritizing EBITDA. On the IndiHome side, while we have been able to grow the overall list over time, we also see a lot of competitive pressure, especially in terms of pricing. Now, this continues to be a focus area for us with a wide range of solutions that we have, from the low-end Orbit point of view to all the way to the high-speed access that we provide to our customers. We've been emphasizing over the past year the following.

Speaker #1: On the indie home side, while we have been able to grow the overall list over time, we also see a lot of competitive pressure.

Speaker #1: Especially in terms of pricing. Now, this continues to be a focus area for us, with a wide range of solutions that we have—from the lower-end Orbit point of view, all the way to the high-speed access that we provide to our customers.

Speaker #1: We've been emphasizing over the past year the following. The first one, with our existing base, we have been protecting it using upspeeding for a lot of our customers, and also providing them a lot of additional new services with upselling of mesh.

Lionel Chng: The first one, with our existing base, we have been protecting it using an upspeeding for a lot of our customers and also providing them a lot of additional new services with upselling of mesh, but also where it required change of ONT. That has been proven to really reduce the level of churn and also improve the overall customer experience. The good news on IndiHome is despite the high competitive pressure, we do see this market growing, and there is still room for opportunity for further growth. This is supported especially by the efforts from the sales team and also the Telkom team to provide Home ID nationwide for the teams to be able to sell better and more accurately, and also install much faster. This in addition to a better customer service experience.

Speaker #1: But also, where it's required, change of ONT. And that has been proven to really reduce the level of churn and also improve the overall customer experience.

Speaker #1: The good news on IndiHome is, despite the high competitive pressure, we do see this market growing and there is still room for opportunity for further growth.

Speaker #1: This is supported especially by the efforts from the sales team and also the telecom team to provide Home ID nationwide for the teams to be able to install a cell battery more accurately, and also install much faster.

Speaker #1: This, in addition to a better customer service experience, we believe that we do have a comprehensive set of solutions—mobile and IndiHome—to offer to our customers.

Lionel Chng: We believe that we do have a comprehensive set of solutions, mobile and IndiHome, to offer to our customers. Thank you.

Speaker #1: Thank you.

Speaker #5: Thank you, Angelo and Lionel. The next question is for Telkomsel as well. The next question is coming from Indra Chaya at Macquarie. In the first quarter of 2026, Telkomsel has the lowest ARPU among MNOs.

Brad: Thank you, Angelo and Lionel. The next question is for Telkomsel as well. The next question coming from Indra Wijaya at Macquarie. In the Q1 2026, Telkomsel has the lowest ARPU among MNOs. Does this mean more upside for Telkomsel, or is it a function of narrowing gap between Telkomsel and peers? Question two, IndiHome reported a revenue decline year-over-year. How should we see this in the full year of 2026?

Bret Ginesky: Thank you, Angelo and Lionel. The next question is for Telkomsel as well. The next question coming from Indra Wijaya at Macquarie. In the Q1 2026, Telkomsel has the lowest ARPU among MNOs. Does this mean more upside for Telkomsel, or is it a function of narrowing gap between Telkomsel and peers? Question two, IndiHome reported a revenue decline year-over-year. How should we see this in the full year of 2026?

Speaker #5: Does this mean more upside for Telkomsel, or is it a function of a narrowing gap between Telkomsel and its peers? Question two: IndiHome reported a revenue decline year over year.

Speaker #5: How should we see this in the full year of 2026?

Speaker #1: Okay, Lionel here again. So, the focus has been on a more disciplined and targeted pricing approach—number one. Number two, being able to stimulate our existing base with new digital services that we offer.

Lionel Chng: Okay. Lionel here again. The focus has been on a more disciplined and targeted pricing approach, number one. Number two, to be able to stimulate our existing base with new digital services that we offer. Finally, with a very disciplined approach in terms of our customer lifecycle management, providing our customers more for more. Is there room for further ARPU growth? The answer is definitely yes. We are also being very sensitive to the macroeconomic situation that we are facing here, the situation on inflation, the decline in the rupiah. Rest assured, we are watching this very carefully as we manage our overall ARPU mix. With regards to IndiHome, we saw the revenue decline, and the good news also is that quarter on quarter that decline has already evened out.

Speaker #1: And finally, with a very determined, disciplined approach in terms of our customer lifecycle management, providing our customers more for more. Is there room for further ARPU growth?

Speaker #1: The answer is definitely yes. But we are also being very sensitive to the macroeconomic situation that we are facing here—the situation on inflation, and the decline in the rupiah.

Speaker #1: So rest assured, we're watching this very carefully as we manage our overall ARPU mix. With regards to IndiHome, we saw the revenue decline, and the good news also is that, quarter on quarter, that decline has already evened out.

Speaker #1: We have started seeing green shoots with regards to our new subscriber base increasing, the amount of churn decreasing, and at the same time, being able to manage our collection much better than before.

Lionel Chng: We have started seeing green shoots with regards to our new subscriber base increasing, the amount of churn decreasing, and at the same time being able to manage our collection much better than before. These are some of the green shoots, but the reality is that it is highly competitive, and we do see ARPU decline quarter on quarter. In order to do so, it is going to be a multipronged approach. I mentioned earlier with regards to the low-end products that we get to sell, supported by our mobile business, all the way to upspeeding and upselling to our existing base of customers. One more piece of news to share is that our fixed mobile convergence is now at a record high at 60%.

Speaker #1: So these are some of the green shoots. But the reality is that it is highly competitive, and we do see ARPU decline quarter on quarter.

Speaker #1: In order to do so, it is going to be a multi-pronged approach. I mentioned earlier, with regards to the low-end products that we get to sell, supported by our mobile business, all the way to upspeeding and upselling to our existing base of customers.

Speaker #1: The one more piece of news to share is that our fixed mobile convergence is now at a record high. At 60 percent. And this is how we have been able to leverage a comprehensive portfolio on both mobile and fixed home in a much more targeted basis for us to be able to grow this business positively.

Lionel Chng: This is how we have been able to leverage a comprehensive portfolio on both mobile and fixed home in a much more targeted basis for us to be able to grow this business positively.

Speaker #3: Thank you, Lionel. If we can move on to the next questions. I can group a couple of questions that have the same theme. These came from Sabrina Trimegah and also Christina of Bloomberg.

Brad: Thank you, Lionel. We can move on to the next questions. I can group a couple of questions that have the same theme. These came from Sabrina Trimigah and also Christina of Bloomberg. Based on management's earlier comments, should we view the Q1 O&M expense level as the new run rate for the remainder of the year, or do you expect further efficiency gain as lower margin entities undergo optimization? O&M expenses are expected to decline in the coming quarters, could you provide some indication of the potential magnitude of the savings? I'll hand this over to Angelo.

Operator: Thank you, Lionel. We can move on to the next questions. I can group a couple of questions that have the same theme. These came from Sabrina Trimigah and also Christina of Bloomberg. Based on management's earlier comments, should we view the Q1 O&M expense level as the new run rate for the remainder of the year, or do you expect further efficiency gain as lower margin entities undergo optimization? O&M expenses are expected to decline in the coming quarters, could you provide some indication of the potential magnitude of the savings? I'll hand this over to Angelo.

Speaker #3: Based on management's earlier comments, should we include the first quarter O&M expense level as a new run rate for the remainder of the year?

Speaker #3: Or do you expect further efficiency gains as slower-margin entities undergo optimization? If O&M expenses are expected to decline in the coming quarters, could you provide some indication of the potential magnitude of the savings?

Speaker #3: I'll hand this over to Angelo.

Speaker #1: Okay. Thank you for the question. There's actually this works, right? Yeah. There's actually a few things going on here, right? So if you look at our O&M, on the year-on-year basis, we have an increase of about a trillion.

Arthur Angelo Syailendra: Okay. Thank you for the question. This works, right? Yeah. There's actually a few things going on here, right? If you look at our O&M on a year-on-year basis, we have an increase of about IDR 1 trillion, right, on our O&M. About 80% of that IDR 1 trillion comes from the gaming voucher, right? We buy more gaming voucher in the Q1. As I mentioned before, this has an offsetting revenue, i.e., there is revenue, but the margin is 10, right? Therefore, about half, 50% of the increase is driven by buying more gaming voucher. About 24%, 25% of that is an increase in our network maintenance cost. As we look to modernize our network going forward, we think this number can be managed better.

Angelo Syailendra: Okay. Thank you for the question. This works, right? Yeah. There's actually a few things going on here, right? If you look at our O&M on a year-on-year basis, we have an increase of about IDR 1 trillion, right, on our O&M. About 80% of that IDR 1 trillion comes from the gaming voucher, right? We buy more gaming voucher in the Q1. As I mentioned before, this has an offsetting revenue, i.e., there is revenue, but the margin is 10, right? Therefore, about half, 50% of the increase is driven by buying more gaming voucher. About 24%, 25% of that is an increase in our network maintenance cost. As we look to modernize our network going forward, we think this number can be managed better.

Speaker #1: Right? On our O&M, about 80 percent of that one trillion comes from the gaming voucher. Right? We buy more gaming vouchers in the first quarter.

Speaker #1: As I mentioned before, this has an offsetting revenue—there is revenue, but the margin is thin, right? And therefore, about half, or 50%, of the increase is driven by buying more gaming vouchers.

Speaker #1: About 24 to 25 percent of that is an increase in our network maintenance costs. As we look to modernize our network going forward, we think this number can be managed better.

Speaker #1: Right? And the last one, at least at Telkomsel, an increase of about 125 billion out of that one trillion increase is predominantly driven by their growth in revenue.

Arthur Angelo Syailendra: Right. The last one at Telkomsel, an increase of about IDR 125 billion out of that IDR 1 trillion increase, is predominantly driven by their growth in the revenue. Now within O&M, there is also, apart from the O&M that contributes to our cost of expense, there's also what we call CPE or customer premise equipment, that incur a raise of about IDR 325 billion on a year-on-year basis. Right? Now, the story behind this is that, starting in 2025, the B2B ICT segment, we made an effort to improve their reporting process to align cost recognition with categories in CPE costs booked on an annual basis. Quarterly cost book will be more volatile. Previously, we would recognize revenue and allocated expenses throughout the year, but adjustment to the expenses due to timing issues would always occur only at year-end.

Angelo Syailendra: Right. The last one at Telkomsel, an increase of about IDR 125 billion out of that IDR 1 trillion increase, is predominantly driven by their growth in the revenue. Now within O&M, there is also, apart from the O&M that contributes to our cost of expense, there's also what we call CPE or customer premise equipment, that incur a raise of about IDR 325 billion on a year-on-year basis. Right? Now, the story behind this is that, starting in 2025, the B2B ICT segment, we made an effort to improve their reporting process to align cost recognition with categories in CPE costs booked on an annual basis. Quarterly cost book will be more volatile. Previously, we would recognize revenue and allocated expenses throughout the year, but adjustment to the expenses due to timing issues would always occur only at year-end.

Speaker #1: Now, within O&M, there is also, apart from the O&M that contributes to the cost of expense, there's also what we call CPE, or customer premise equipment.

Speaker #1: That incurs a raise of about 325 billion rupiah on a year-on-year basis, right? Now, the story behind this is that starting in '25, in the B2B ICT segment, we made an effort to improve the reporting process to align cost recognition with categories in CPE costs, booked on an annual basis.

Speaker #1: Although the quarterly cost book will be more volatile, previously we would recognize revenue and allocate expenses throughout the year. But adjustments to the expenses due to timing issues would always occur only at year-end.

Speaker #1: Now, we're improving that, and the idea is that we will probably have greater quarter-on-quarter (Q-on-Q) variability in CPE expense recognition, but we will have less surprise on the year-end adjustment.

Arthur Angelo Syailendra: Now we're improving that, and the idea is that we will have probably a greater Q-on-Q variability in the CPE expense recognition, but we will have less surprise on the year-end adjustment, and a more stable full-year result. The gist of it is that we do not want to have a lot of end-of-year adjustment and negative surprises for this business segment that is currently going on progress. Right? A work in progress. We would like to be able to track it better on quarterly basis. Instead of doing reconciliation on the cost and revenue every year, like what we did before, we are doing it now on quarterly basis. Thank you.

Angelo Syailendra: Now we're improving that, and the idea is that we will have probably a greater Q-on-Q variability in the CPE expense recognition, but we will have less surprise on the year-end adjustment, and a more stable full-year result. The gist of it is that we do not want to have a lot of end-of-year adjustment and negative surprises for this business segment that is currently going on progress. Right? A work in progress. We would like to be able to track it better on quarterly basis. Instead of doing reconciliation on the cost and revenue every year, like what we did before, we are doing it now on quarterly basis. Thank you.

Speaker #1: And a more stable full-year result. The gist of it is that we do not want to have a lot of end-of-year adjustments and negative surprises.

Speaker #1: For this business segment that is currently ongoing, right? A work in progress. We would like to be able to track it better on a quarterly basis.

Speaker #1: So instead of doing reconciliation on the cost and revenue every year like what we did before, we're doing it now on a quarterly basis. Thank you.

Speaker #4: Thank you, Angelo. The next question is from Sachin Mittal. This question is also for Telkomsel: what's keeping the revenue growth guidance low in a recovering mobile sector?

Brad: Thank you, Angelo. The next question is from Sachin Mittal. This question's also for Telkomsel. What's keeping the revenue growth guidance low in a recovering mobile sector? Your ARPU premium over peers has reduced significantly. Should we expect it to rise again? Perhaps, Lionel.

Bret Ginesky: Thank you, Angelo. The next question is from Sachin Mittal. This question's also for Telkomsel. What's keeping the revenue growth guidance low in a recovering mobile sector? Your ARPU premium over peers has reduced significantly. Should we expect it to rise again? Perhaps, Lionel.

Speaker #4: Your ARPU premium over peers has reduced significantly. Should we expect it to rise again? Perhaps, Lionel?

Speaker #1: Yes, so for us, we are encouraged by the improving market environment. We do watch our competition very carefully. Alongside the macroeconomic environment, our guidance really does reflect a focus on sustainable, value-accretive growth, driven by monetization and also customer quality.

Lionel Chng: Yeah. For us, we are encouraged by the improving market environment, and we do watch our competition very carefully alongside with the macroeconomic environment. Our guidance really does reflect a focus on sustainable value accretive growth driven by monetization and also customer quality versus pursuing growth at any cost. We do see some challenges with our overall legacy decline, but that has been flattening out. We are cautiously optimistic about the mobile revenue growth. However, that has to be tempered with the fact that competition continues to be intense and the overall economic outlook is not very favorable for us. That's why we are keeping the guidance relatively low. With regards to the ARPU, I mentioned it previously.

Speaker #1: Versus pursuing growth at any cost, we do see some challenges with our overall legacy decline, but that has been flattening out. We are cautiously optimistic about the mobile revenue growth.

Speaker #1: However, that has to be tempered with the fact that competition continues to be intense, and the overall economic outlook is not very favorable for us.

Speaker #1: So that's why we are keeping the guidance relatively low. With regards to the ARPU, I mentioned it previously. I think one point to note is that for Telkomsel, with the large base that we have as the overall market leader, we were able to achieve Rp45,000 average ARPU in Q4.

Lionel Chng: I think one point to note is that from Telkomsel, with the large base that we have as overall market leader, we were first to achieve IDR 45,000 at average ARPU in Q4. We successfully maintained that despite some of the headwinds that we've had. We do not categorize our approach just from simply increasing prices. It will be in terms of a much more disciplined, targeted pricing, making sure our customers are getting more for more, and at the same time being sensitive to their household capability to purchase also. We do see ARPU improvements not just from price increases, but the ability to migrate towards higher value monthly packs, better renewal mix, et cetera. As Ibu Dian mentioned earlier, our high-value packs now contribute to majority of our overall transaction value on a month-to-month basis. This is a combined approach that we have.

Speaker #1: We've successfully maintained that despite some of the headwinds that we've had. And we do not categorize our approach as simply increasing prices. It will be in terms of a much more disciplined, targeted pricing—making sure our customers are getting more for more, and at the same time, being sensitive to the household capability to purchase also.

Speaker #1: We do see ARPU improvements not just from price increases, but from the ability to migrate towards higher value monthly packs, better renewal mix, etc. And as Ibu Dian mentioned earlier, our high value packs now contribute to a majority of our overall transaction value on a month-to-month basis.

Speaker #1: So, this is a combined approach that we have—having a high level of discipline, a high level of targeted approach, and then, after that, giving our customers more for more, especially during these challenging economic times.

Lionel Chng: Having a high level of discipline, high level of targeted approach, and then after that, giving our customers more for more, especially during these challenging economic times. We recognize the premium that we have, and we want to make sure that our customers get the value which they deserve.

Speaker #1: We do this as we recognize the premium that we have, and we want to make sure that our customers get the value which they deserve.

Speaker #4: Thank you, Lionel. We have a number of investors and analysts asking questions about the updated timeline for the streamlining, and also about unlocking value between the fiber and the data center business.

Brad: Thank you, Lionel. We have a number of analysts asking questions about the updated timeline for the streamlining and also for the unlocking of value between the fiber and the data center business. I think Angelo can give an update on all of this.

Bret Ginesky: Thank you, Lionel. We have a number of analysts asking questions about the updated timeline for the streamlining and also for the unlocking of value between the fiber and the data center business. I think Angelo can give an update on all of this.

Speaker #4: I think, Angelo, can you give an update on all of this?

Speaker #1: Yeah, no, thank you. There are a lot of questions on this. I'll take the update on streamlining. I'll pass it on to Paseno to address the update on value unlock, namely the data center as well as our fiber business.

Arthur Angelo Syailendra: Yeah. Thank you. A lot of question on this. I'll take the update on streamlining. I'll pass on to Bapak Seno to address the update on value unlock, namely the data center as well as our fiber business. On streamlining, as you look into our presentation that we just presented, today we will announce the SPA signing of AdMedika and TelkoMedika. Right? That's practically done in the next few hours. With respect to closing business, we have closed to date about four business, and we're going to close two more in a week or so. Before mid-year, 30 June, like Budian mentioned, we also working on closing another two, which mean, in total, we will have about nine or 10 companies undergoing a streamlining exercise before H1 2026.

Angelo Syailendra: Yeah. Thank you. A lot of question on this. I'll take the update on streamlining. I'll pass on to Bapak Seno to address the update on value unlock, namely the data center as well as our fiber business. On streamlining, as you look into our presentation that we just presented, today we will announce the SPA signing of AdMedika and TelkoMedika. Right? That's practically done in the next few hours. With respect to closing business, we have closed to date about four business, and we're going to close two more in a week or so. Before mid-year, 30 June, like Budian mentioned, we also working on closing another two, which mean, in total, we will have about nine or 10 companies undergoing a streamlining exercise before H1 2026.

Speaker #1: Now, on streamlining—as you look into our presentation that we just presented—today, we will announce the SPA signing of Atmedica and Telco Medica.

Speaker #1: Right? So that's practically done in the next few hours. With respect to closing business, we have closed, to date, about four businesses, and we're going to close two more in a week or so.

Speaker #1: And before mid-year, June 30, like Ibu Dian mentioned, we are also working on closing another two. Which means, in total, we will have about nine or ten companies undergoing streamlining exercises before the first half of '26.

Speaker #1: Now, with that in mind, I would like to pass this question on to Paseno regarding the unlocking portion for data center and fiber. Thank you.

Arthur Angelo Syailendra: Now, with that in mind, I would pass this question on to Pak Seno on the unlocking portion for data center and fiber. Thank you.

Angelo Syailendra: Now, with that in mind, I would pass this question on to Pak Seno on the unlocking portion for data center and fiber. Thank you.

Speaker #4: Thank you, Panjul. And thank you for the question. So essentially, regarding the unlocking I think you were referring to Infranexia. So essentially, what we are doing right now, we are focusing on doing the streamlining and as well as all the divestment activities in parallel to that.

Seno Soemadji: Thank you, Panjo. Thank you for the question. Essentially regarding the unlocking, I think you are referring to InfraNexia here. Essentially what we are doing right now, we are focusing on doing the streamlining and as well as all the divestment activities. In parallel to that, we are also seeking how to promote the consolidation of the industry. On the FiberCo itself, right now, we are in the midst of finalizing phase II. It has shifted slightly from the original timeline. Phase I has been completed last December, we are looking for phase II to be completed in Q3 within this year. The shifting was mainly due to asset cleanup, licensing, as well as readiness for the work. Our priority is also to make sure that the operational ability and our service to the customer is still on the table.

Speaker #4: We are also seeking ways to promote the consolidation of the industry. Nevertheless, on the fiber core itself, right now, we are in the midst of finalizing phase two.

Speaker #4: It has shifted slightly from the original timeline. We are now—while phase one was completed last December—looking for phase two to be completed in Q3 of this year.

Speaker #4: The shifting was mainly due to asset cleanup, licensing, as well as readiness for the work. Our priority is also to make sure that the operational ability and our service to the customer are still stable.

Speaker #4: Yeah. And we will be progressing the discussion with the potential strategic investor once all of these are done. And then, in terms of the other action that we're doing from the corporate perspective, the DC monetization process is still in progress.

Seno Soemadji: We are progressing the discussion with also the potential strategic investor, once all of these are done. In terms of the other action that we're doing from the corporate perspective, DC monetization process is still in progress, and it is now entering the advanced stage. We've got one and two final candidates. The objective is to remain to complete transaction by year-end within this year. It is due to final negotiation as well as due diligence and regulatory processes. We intend to retain the controlling stake while bringing in strategic partner that can contribute hyperscaler relationship, larger contract opportunities, and as well as operational expertise.

Speaker #4: And it is now entering the advanced stage. We have one or two final candidates. The objective is to complete the transaction by year-end, within this year.

Speaker #4: This is due to final negotiations, as well as due diligence and regulatory processes. We intend to retain the controlling stake while bringing in strategic partners that can contribute hyperscaler relationships, larger contract opportunities, and operational expertise.

Speaker #4: Thank you, Paseno. The next question is directed towards Telkomsel. Can you update us on the timetable for the 5G auctions? Are there any disclosures on the terms for reserve pricing or any other information that you can provide?

Brad: Thank you, Pak Seno. The next question is directed towards Telkomsel. Can you update us on the timetables for the 5G auctions? Are there any disclosures on the terms for reserve pricing or any other information that you can provide? This was asked by a number of different analysts. Pak Daru, please, and then maybe Pak Lionel can add. Thank you.

Bret Ginesky: Thank you, Pak Seno. The next question is directed towards Telkomsel. Can you update us on the timetables for the 5G auctions? Are there any disclosures on the terms for reserve pricing or any other information that you can provide? This was asked by a number of different analysts. Pak Daru, please, and then maybe Pak Lionel can add. Thank you.

Speaker #4: This was asked by a number of different analysts. So, Pak Daru, please. And then maybe Pak Lionel can add. Thank you.

Speaker #3: Okay, thank you for the question. For the spectrum acquisition for 700 megahertz and also the 2.6 gigahertz, it is expected to remain manageable, with the instrument remaining disciplined and aligned with written feasibility, deployment strategy, and also prudent OPEX/CAPEX management to preserve healthy profitability.

Daru Mulyawan: Okay. Thank you for the question. For the spectrum acquisition for 700 MHz and also the 2.6 GHz is expected to remain manageable, with the instrument will remain disciplined and aligned with return feasibility, deployment strategy, and also prudent OpEx CapEx management to preserve healthy profitability. The final pricing will be determined through the auction mechanism, with current payment structure being relatively more rational compared to previous scheme and helping reduce upfront burden. As market leader, Telkomsel aims to participate strategically, leveraging its strong network leadership, broad ecosystem, and differentiated digital content offerings to drive quality led monetization and long-term competitiveness while maintaining financial discipline. Based on the publicly available information, selection document were distributed during 29 April until 7 May 2026, followed by clarification and simulation in May, documents admission and frequency in June, and the potential spectrum awarding around July to early August 2026.

Speaker #3: The final pricing will be determined through the auction mechanism, with the current payment structure being relatively more rational compared to the previous scheme and helping reduce the upfront burden.

Speaker #3: As market leader, Telkomsel aims to participate strategically, leveraging its strong network leadership, broad ecosystem, and differentiated digital content offerings to drive quality-led monetization and long-term competitiveness, while maintaining financial discipline.

Speaker #3: Based on the publicly available information, selection documents were distributed from April 29th until May 7th, 2026, followed by clarification and simulation in May.

Speaker #3: Document submission and verification are scheduled for June, with the potential spectrum awarding expected around July to early August 2026. At this stage, management is unable to disclose specific pricing expectations.

Daru Mulyawan: At this stage, management is unable to disclose the specific pricing expectations, so there is no public information yet to be the base price. Thank you.

Speaker #3: So, there is no public information yet to be the base price. Thank you.

Speaker #4: Thank you, Pak Daru. The next question is from Piyush at HSBC. Please also raise your hand if there are any other questions. If not, it seems like this is the last question in the queue.

Brad: Thank you, Pak Daru. The next question is from Piyush at HSBC. Please also raise your hand if there's any other questions. If not, it seems like this is the last question in the queue. The question is: What is the ERP budget for 2026? For question part two: B2B ICT segment, with the ongoing streamlining, what should be the expectation for 2026 revenue growth and EBITDA margin in B2B ICT? I'll hand this over to Angelo to answer this.

Bret Ginesky: Thank you, Pak Daru. The next question is from Piyush at HSBC. Please also raise your hand if there's any other questions. If not, it seems like this is the last question in the queue. The question is: What is the ERP budget for 2026? For question part two: B2B ICT segment, with the ongoing streamlining, what should be the expectation for 2026 revenue growth and EBITDA margin in B2B ICT? I'll hand this over to Angelo to answer this.

Speaker #4: But the question is: What is the ERP budget for 2026? And for question part two, the B2B ICT segment—with the ongoing streamlining—what should be the expectation for 2026 revenue growth and EBITDA margin in B2B ICT?

Speaker #4: I'll hand this over to Angelo to answer this.

Speaker #1: Yeah. On ERP, just to give you some sort of context—on Q4 '25, we had an ERP program focusing on the employee at the parent company level, the whole-core level.

Arthur Angelo Syailendra: On ERP, just to give you some sort of context on Q4 2025, we had an ERP program focusing on the employee at the parent company level, the holdco level. We spent about IDR 937 billion, with about 612 employees taking this program, right? In 2026, we budget anywhere between IDR 1 trillion to 1.2 trillion additional ERP. Predominantly, we expect that the participant will be the employees at our subsidiary level instead of the holding company level, like what we did in 2025. Now, on the B2B ICT revenue. This year, we expect revenue to be flat, right? With respect to EBITDA margin, we expect this to be hovering around mid to high teens EBITDA margin for our B2B ICT business. Thank you.

Angelo Syailendra: On ERP, just to give you some sort of context on Q4 2025, we had an ERP program focusing on the employee at the parent company level, the holdco level. We spent about IDR 937 billion, with about 612 employees taking this program, right? In 2026, we budget anywhere between IDR 1 trillion to 1.2 trillion additional ERP. Predominantly, we expect that the participant will be the employees at our subsidiary level instead of the holding company level, like what we did in 2025. Now, on the B2B ICT revenue. This year, we expect revenue to be flat, right? With respect to EBITDA margin, we expect this to be hovering around mid to high teens EBITDA margin for our B2B ICT business. Thank you.

Speaker #1: We spent about 937 billion rupiah, with about 612 employees taking this program. Right? In 2026, we budget anywhere between 1 to 1.2 trillion. Additional ERP.

Speaker #1: And predominantly, we expect that the participants will be employees at our subsidiary level, instead of the holding company level, like what we did in '25.

Speaker #1: Now, on the B2B ICT revenue, this year we expect revenue to be flat, right? And then, with respect to EBITDA margin, we expect this to be hovering around mid to high teens EBITDA margin for our B2B ICT business.

Speaker #1: Thank you.

Speaker #4: Thank you, Angelo. It appears there are no further questions. I'd like to thank our Board of Directors and the Board of Directors at Telkomsel for joining.

Brad: Thank you, Angelo. Appears to be no further questions. I'd like to thank our board of directors and the board of directors at Telkomsel for joining. I'd like to also thank all of the analysts and investors for joining as well. We will have a recording of this call available. We will send you an email link of this. It will be on our website for the next seven days. We look forward to speaking to you on our Q2 results. We do apologize that the last couple presentations have been delayed because of the restatement that we did for the full year 2023 and 2024. I think we're back on track now. We should be reporting the Q2 at the end of July. Thank you very much.

Bret Ginesky: Thank you, Angelo. Appears to be no further questions. I'd like to thank our board of directors and the board of directors at Telkomsel for joining. I'd like to also thank all of the analysts and investors for joining as well. We will have a recording of this call available. We will send you an email link of this. It will be on our website for the next seven days. We look forward to speaking to you on our Q2 results. We do apologize that the last couple presentations have been delayed because of the restatement that we did for the full year 2023 and 2024. I think we're back on track now. We should be reporting the Q2 at the end of July. Thank you very much.

Speaker #4: I'd like to also thank all of the analysts and investors for joining as well. We will have a recording of this call available, and we will send you an email link to access it.

Speaker #4: It will be on our website for the next seven days. We look forward to speaking to you at our second quarter results. We do apologize that the last couple presentations have been delayed because of the restatement that we did for the full year 2023 and 2024.

Speaker #4: But I think we're back on track now. We should be reporting the second quarter at the end of July. Thank you very much.

Operator: Goodbye

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